Kenya: Value Added Tax (Digital Marketplace Supply) Regulations entered into force

On 10 April 2021, the Value Added Tax (VAT) (Digital Marketplace Supply) Regulations, 2020, have been implemented, six months after their publication in the official gazette on 9 September 2020. These regulations define taxable supplies, including downloadable digital content, subscription-based media, over-the-top services, software, electronic data management, music, games, search engine services, tickets, distance teaching, and other electronic services. The tax applies to these supplies when made in Kenya, with specific provisions for business-to-business and business-to-consumer transactions. Suppliers from export countries must register for tax if they conduct business-to-consumer transactions with recipients in Kenya, either through a simplified online framework or by appointing a tax representative. The place of supply is deemed to be in Kenya if the recipient is located there, determined by payment and residence proxies. Tax must be paid by the supplier or their representative, with returns submitted monthly. Penalties apply for non-compliance.